Hymans Robertson advises on Aviva Staff Pension Scheme £875m buy-in with Aviva
27 Nov 2020
The Aviva Staff Pension Scheme (the “Scheme”) has completed a £875 million buy-in with Aviva Life & Pensions UK Ltd (“Aviva”) covering the Scheme’s liabilities in respect of c.2,800 members. This is the second buy-in with Aviva following a £1.7bn buy-in in 2019 and a £5bn longevity swap in 2014. Hymans Robertson acted as lead adviser to the Scheme.
Through the latest buy-in arrangement, Aviva will insure the defined benefit pension liabilities of approximately 2,100 deferred and 700 current pensioner members of the Scheme, taking the total number of insured members in the Scheme to over 27,000.
Brian Bussell, Chair of the Trustee of the Scheme, said: "The Trustee is delighted to have entered into this second buy-in with Aviva to continue to take steps to help secure the benefits due to our members. In addition to the existing longevity swap and buy-in, this recent buy-in helps to further reduce the amount of longevity and investment risk within the Scheme.
"Hymans Robertson’s leadership, advice and insights proved invaluable to us in reaching another significant milestone for the Scheme."
Michael Abramson, Partner at Hymans Robertson and lead adviser on the transaction added: “Hymans Robertson is pleased to have helped the Trustee take another meaningful step in its de-risking journey, with over £7bn of the Scheme’s longevity risk now removed. In a turbulent year, this buy-in is a prime example of how pension schemes who are well prepared can move nimbly to take advantage of de-risking opportunities.”